United States President Donald Trump said that the US may be headed for recession. He also said that the nationwide coronavirus emergency could last until the end of the summer or even longer.
Overnight, the US share market (the S&P 500 (INX)) dropped 12% in another extremely painful day. The S&P/ASX 200 Index (ASX: XJO) is expected to have another painful day today.
He gave a press conference which included a number of recommendations for Americans to limit contact with other people. Those recommendations included:
- All older Americans should stay home
- Work and schooling should be done at home
- Unnecessary travel, shopping trips and social visits should be avoided
- Anyone in a household who tests positive should stay home, as well as everyone who lives there.
Over 40 states have declared a state of emergency and 29 states have announced they are closing schools. Several states have already announced the shutting or restrictions on bars and restaurants.
Mr Trump said that the country is facing an invisible enemy that is so contagious. However, whilst a nationwide lockdown is not being considered, he did say: "We may look at certain areas, certain hot spots as they call them." When asked to rate his administration's performance, he gave himself a 10 out of 10.
How did certain US shares do?
When you look at the large US shares, they fall heavily across the board.
The Apple share priced dropped almost 13%.
The Microsoft share price dropped 14.75%.
The Facebook share price dropped 14.25%.
The Alphabet share price dropped 11.6%.
The Amazon share price dropped 5.4%.
The JPMorgan share price dropped almost 15%.
Even the Netflix share price dropped 11%.
ASX investors are likely to be presented with even lower prices today.
